Why subsidies when savings are already there?

A study has looked into a commuter train connecting Howell with Ann Arbor. That would be a great start towards using desperately needed mass transit in the state. If this plan could work, it would provide incentives for other areas to follow suit. The problem? A study has determined that the commuter train would need a $2.3 million annual subsidy.

The study points out that the average form Howell to Ann Arbor spends $27 a day on transportation costs. The numbers work out to a charge of about $2.82 each way or about $5.65 round-trip with an additional subsidy that would be pretty much equal.

Here's the important question: if the commuters are saving an average of over $22 a day, why are we subsidizing the trip? If it's a $10 trip each way, that's still cheaper than the $27 a day that the study says is being charged. Charging each of the approximately 1,800 expected daily riders $225 a month would generate the $4.8 million needed for the annual expenses and would cost significantly less than the $500-$600 the study implies that an average commuter is currently paying. Even the gas costs (about 2 gallons a day or $6 for a relatively fuel efficient car getting around 28 mpg or 3 gallons ($9) a day for commuters getting a more average 19 mpg) alone would be alleviated by unsubsidized use of the train.

In short, if they're already saving considerable amounts of money then why should we subsidize it at all? If I could take a train to work instead of driving and it was going to cost me less money than I'm spending now. I'd jump on that and I certainly wouldn't expect anyone else to foot the bill for me.

Study: Ann Arbor-Howell commuter train needs $2.3M annual subsidy
The Associated Press

ANN ARBOR, Mich. (AP) - A study says commuter rail service between Ann Arbor to Howell would save users a lot of money but require a $2.3 million annual subsidy.

The study says a car commuter from Howell to Ann Arbor spends about $27 a day.

The Washtenaw Area Transportation Study estimates the annual operating cost of the train from Ann Arbor to Howell at $4.8 million.

It says 884,000 rides a year would generate $2.5 million in fares. The study says the subsidy would be about $2.66 per ride.

Michael Cicchella is supervisor of Washtenaw County's Northfield Township and a commuter line backer. He tells the Ann Arbor News the capital costs would be about $2.8 million.